Praj Industries is an A /T+1 group Industrial Products company with having Face value of Rs 2.00. Praj Industries Ltd, incorporated in 1985 and headquartered in Pune has a presence across the globe with more than 750 references in more than 75 countries. It began as a supplier of an ethanol plant, today it is a global company providing various solutions with a focus on the environment, energy, and agri-process industry.Praj Industries is an A /T+1 group Industrial Products company with having Face value of Rs 2.00. Praj Industries Ltd, incorporated in 1985 and headquartered in Pune has a presence across the globe with more than 750 references in more than 75 countries. It began as a supplier of an ethanol plant, today it is a global company providing various solutions with a focus on the environment, energy, and agri-process industry.Praj Industries is an A /T+1 group Industrial Products company with having Face value of Rs 2.00. Praj Industries Ltd, incorporated in 1985 and headquartered in Pune has a presence across the globe with more than 750 references in more than 75 countries. It began as a supplier of an ethanol plant, today it is a global company providing various solutions with a focus on the environment, energy, and agri-process industry.Praj Industries is an A /T+1 group Industrial Products company with having Face value of Rs 2.00. Praj Industries Ltd, incorporated in 1985 and headquartered in Pune has a presence across the globe with more than 750 references in more than 75 countries. It began as a supplier of an ethanol plant, today it is a global company providing various solutions with a focus on the environment, energy, and agri-process industry.

Fundamentals (FY22-23):

Financial Results:

Company’s Net Sales was at Rs 876.58 crore in September 2022 up 64.64%, Quarterly Net Profit at Rs. 48.13 crore in September 2022 up 44.4% and stands at Rs. 73.79 crore in September 2022 up 39.97% compared to September 2021.

List of recent updates regarding the company:

1. Praj Industries has bagged an order to set up India's largest capacity syrup-based ethanol plant from Godavari Biorefineries (GBL) in Karnataka. As a part of this project, Praj Industries will expand the existing ethanol manufacturing capacity to 600 kilo liter per day (KLPD), using sugarcane syrup.
2.  Company signed a Memorandum of Understanding (MoU) with Egyptian Sugar and Integrated Industries Company (ESIIC) of Egypt. As a part of this MoU, Praj and ESIIC will develop infrastructure, help formulate policy framework, and create awareness to mainstream bioeconomy in Egypt. They will set up 1st and 2nd Generation ethanol projects in Egypt.
3. Company in collaboration with the Pune-based Automotive Research Association of India (ARAI), is developing a binder that will help blend ethanol with diesel.
4. On occasion of World Biofuels Day India’s Hon. Prime Minister Shri Narendra Modi unveiled first of its kind and Asia’s first 2G ethanol biorefinery of Indian Oil Corp. Ltd. (IOCL) at Panipat Haryana where Praj is technology licensor and EPCM partner for this landmark project which is capable of processing 200,000 metric tons of rice straw annually to generate around 30 million liters of ethanol. This project is based on Praj’s proprietary technology processing rice straw as feedstock for production of ethanol.
5.  It is 2nd in a list of the world’s 50 Hottest companies in the global bio-economy for 2021 in the Low Carbon Fuels and Renewable Chemicals category.
6. Praj Industries has started work on developing biohydrogen technology which is the emerging sector and Green Hydrogen is going to be the fuel of future. Government of India has also announced 19000 crore investments for fast tracking of Green Hydrogen production and its related segments from which Praj Industries will get benefitted.

In past three year the stock gave a return of 184.27% as compared to Sensex which gave a return of 45.04% and 184.36% return compared to 46.42% rise in Nifty.

The Global Cellulosic Ethanol Market Size Was Valued at USD 1097.62 Million in 2021 and is Expected to Expand at a CAGR of 31.21% and Reaching USD 5600.05 Million By 2027. The company is expected to grow 30-40 % annually driven by increase in demand for sustainable solutions for bioenergy along with that company is working on expansion in new areas like sustainable aviation fuel technology and biochemicals. Company’s new growth driven strategies in futuristic business segment such as Green Hydrogen, Ethanol and Bio fuels will help it to range higher in upcoming years and will continue to contribute to its future growth too and considering this the stock is recommended for long term period.​

 - Het Zaveri

- info@smartinvestment.in

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